I wouldn't say that the Bitcoin has no competition because there are some people who like to use other currencies over the Bitcoin.
But the Bitcoin does have a major lead in popularity and worth ahead of the other currencies.
The competition is only with fiat but in crypto world, bitcoin is obviously leading them all and
if bitcoin will continue to succeed the crypto market will also progress as a whole. For now we should be thinking that bitocin and fiat are different and if we compare it with bitcoin, we know already that bitcoin is nothing compared to fiat which is most widely use in this world.
I don't think so. Supposed that bitcoins skyrocketed to $10K because of mass adoption and all. I don't see why would that success will be the success of other cryptos as well. What I'm saying is that a dump coin will continue to be a dump coin regardless of bitcoin's success. At the time bitcoin is having some real success, there would be new coins coming in but the old coins will continue to be what they are unless someone picks it up and hype it up which is very unlikely to happen.
Just think of it as the success of an individual doesn't correlates to other people's success. I can become successful but other people won't get successful too just because I am.
It is obvious the real competition Bitcoin is having is with the fiat currencies and that's the real threat the governments see in Bitcoin and not all those "use for illegal this and that." As for the altcoins, they are all copies and descendants of Bitcoin and so far we are yet to see anyone that a match for Bitcoin. Some of them however have some high points and so enjoys the ride the success of Bitcoin brings to the crypto industry, while a good number should be resident in the trash.